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yesterday

SEC and Ripple Withdraw Appeals, Ending Five-Year XRP Lawsuit

The dismissal leaves Judge Torres’s 2023 split ruling in force, cementing regulatory clarity for XRP.

A representations of cryptocurrency Ripple is seen in front of a stock graph and U.S. dollar in this illustration taken, January 24, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
SEC and Ripple file motion to drop XRP appeals in Second Circuit
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Overview

  • In a joint filing on August 7, the SEC and Ripple formally withdrew their appeals in the Second Circuit, closing the legal dispute over XRP token sales that began in December 2020.
  • Judge Analisa Torres’s July 2023 decision remains intact, finding that public exchange sales of XRP are not securities while institutional sales violate securities laws under a permanent injunction.
  • Ripple’s agreed $125 million civil penalty will be transferred to the U.S. Treasury and each party will bear its own legal fees, according to the stipulation.
  • XRP’s price climbed about 4% in the 24 hours after the appeals were dropped, trading above $3.10 as investors welcomed the clearer regulatory landscape.
  • Some market observers have speculated that the resolution could prompt BlackRock or other asset managers to pursue a spot XRP ETF, although no formal filings have been announced.